Pay Rise Agreed to at NXP

Mixed-signal and application-specific chip company NXP Semiconductors NV (Eindhoven, The Netherlands) has announced that agreement has been reached with trade unions representing workers in The Netherlands on an immediate pay rise of 2.5 percent and another smaller rise on January 1, 2015.

The agreement comes after more than 450 employees at a wafer fab in Nijmegen, The Netherlands, held a two-hour strike in protest at stalled wage negotiations, on Tuesday Feb. 25. The agreement, announced on March 10, is likely to have prevented further action that was scheduled for today, March 12. (See NXP Staff
Strike for More Pay.)

A statement from NXP said:

Among other things, a collective salary increase of 2.5 percent effective March 1, 2014 and a 1.75 percent increase January 1, 2015 for employees up to grade 70 were agreed. Starting in 2015 for grade 80 and 90 the collective increase will not be applicable. The salary increase for the higher grades will be based on the employees' contribution and position in the salary range.

Previously NXP had said 2.25 percent was its limit for the collective pay rise agreement.

The statement continued: "Furthermore the unions and NXP in principle agreed that the bonus scheme for grades up to 45 will be converted to 1 percent fixed salary [increase] by September 1, 2014. NXP also offered the unions to still collectively opt for the new NXP global bonus plan instead before May 1 after they have consulted their members on this topic."

"Beside the topics above, the negotiation result addresses the adjustments of salary grades based on market data rather than a collective increase, a 1 percent increase of the employee contribution for the pension plan and the establishment of a training and development budget to support employees and strengthen their employability."

A spokesperson for NXP said that the trade unions will consult their members on the deal over the next two weeks.

Thats good news for employees. Although 2.5% hike may pinch the pocket of the management but for employees it wont make much differnce in the take home salary. But yes employees need to be kept happy and nothing works like extra money.